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Leave College Endowments Alone

A tax proposal would raise little revenue but harm higher ed.

By

Harry McMahon

Nov. 29, 2017 6:14 p.m. ET

To help pay for tax cuts, congressional Republicans are suggesting a 1.4% excise tax on the net investment income of certain private college and university endowments. The proposal—which would apply to endowments valued at $250,000 or more per full-time student—would affect some 70 schools, including my alma mater, Claremont McKenna College. But the tax, if established, could eventually expand to cover hundreds of institutions.

America’s higher education system is the envy of the world. In addition to attracting the best...